1991 (2) TMI 79

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.... K. SHIVASHANKAR BHAT J. -A short but interesting question arises in this reference. The question referred to us under the provisions of the Income-tax Act, 1961, reads as follows : "Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that legal expenses claimed by the assessee fall under section 80VV of the Act and not under section 37 of the Act ?" ....

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....ings before any income-tax authority or the Appellate Tribunal or any court relating to the determination of any liability under this Act, by way of tax, penalty or interest : Provided that no deduction under this section shall, in any case, exceed in the aggregate five thousand rupees." The assessee contended that the retainer fee paid to counsel was not for the purpose of the Income-tax Ac....

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....so resort to a consultation with the tax consultant for the purpose of tax planning. There may be other questions arising in the course of the assessee's business touching upon the taxation laws. These problems cannot be separated item wise nor can the fee paid to the consultant regarding income-tax cases before the authorities and fee paid regarding other matters be apportioned. The retainer fee ....